AUTHORS: Ian Skinner-Malcolm Fergusson

In March 2003, the UK Treasury and Department for Transport (DfT) published a paper entitled Aviation and the Environment: Using Economic Instruments. The paper is to form the basis of discussions with stakeholders on the use of economic instruments to encourage the aviation industry to take better account of its environmental impact and, where appropriate, to take action to reduce this impact. The Government will take account of these discussions when it presents it views on the future of aviation in a forthcoming White Paper. This reports comments on some of the basic assumptions of the paper and discuss the range and possible impact of a number of economic instruments that could be used to encourage the aviation industry to reduce its adverse environmental impact.